Silver prices have surged above $30, reaching $30.35 on January 11, 2025, marking the metal's seventh consecutive day of gains. This rise occurs despite high U.S. Treasury bond yields and a strong dollar, which has seen the DXY Dollar Index peak at 109.96, its highest level since November 2022, before settling at 109.55, up 0.36% [3f39175c].
The recent U.S. jobs report revealed that the economy added 256,000 jobs in December 2024, significantly exceeding forecasts of 160,000. The unemployment rate also fell to 4.1%, contributing to the dollar's strength and raising concerns about potential interest rate hikes by the Federal Reserve [3f39175c]. Average hourly earnings saw a slight decrease, which has influenced projections for a single Fed rate cut anticipated in 2025 [3f39175c].
The U.S. 10-year Treasury note reached a peak yield of 4.788% before retreating to 4.739%, reflecting the ongoing volatility in the bond market [3f39175c]. As the dollar strengthens, the Bank of Japan is contemplating a rate decision in response to rising inflation forecasts linked to a weakening yen [3f39175c].
In the broader context, the U.S. dollar has been experiencing its longest weekly winning streak in over a year, gaining 0.5% against the yen and over 1% against the British pound, which has fallen to a 14-month low of $1.2239. This surge in the dollar's value is attributed to rising bond yields and concerns regarding British finances, as the ten-year Treasury yields have climbed to 4.68% [7b5d2d6b].
Market analysts are closely monitoring the Federal Reserve's next moves regarding interest rate cuts, as the strong job market data could influence their decisions moving forward. Currently, expectations for interest rate cuts have diminished, with only one anticipated for 2025 [7b5d2d6b]. The volatility in the markets has also affected other assets, with Bitcoin falling 5.7% to $92,600 amid the bond market fluctuations [87c43e2d].